The president of Honduras is vehemently denying his nation’s tiny, pristine Swan Islands are for sale after a bizarre string of Internet-fueled rumors about a planned Fantasy Island-style resort on the sun-drenched isles in the Caribbean.

The confusion is just the latest chapter in the strange history of the 3-square-mile islands, 100 miles off the country’s north coast, which have been inhabited by pirates, claimed by the United States and mined for bird droppings.

The rumors were sparked Friday by an Internet sales pitch launched by resort promoters – one of whom falsely claimed to be kin of President Ricardo Maduro.

The promoters also said the isles would be an independent country and have no property or income taxes.

“I am quite surprised by what this Internet site said, because it is referring to property owned by the Honduran government,” fumed Maduro.

“Honduras has no current plans for tourism development at Swan Islands, nor are they being offered for sale.”

The promoters touted “The Ultimate Fantasy Resort,” complete with elaborate, themed hotel complexes on the islands, which are inhabited mainly by lizards.

“Grand Opening January 1, 2010,” the promoters said on their Web site, which included realistic sketches of tourists strolling through a “Venice-style” capital city named Cygnet.

“There will be no automobiles, the transportation will be by electric golf cart or human-powered transporters,” the ad boasted.

The promoters’ lawyer, Felipe Danzilo, said they are optimistic that a deal can be worked out.

“We have proposed a joint venture in which the Honduran government would give us a multiyear concession for the islands and we in return would put up millions of dollars in investment,” said Danzilo.

The islands were claimed by the United States in 1863 under a measure meant to ensure the supply of bird droppings as fertilizer for American farms.

But they were returned to Honduras in 1971 after the market in bird poop flew the coop. With Post Wire Services